Apple supplier production capacity is currently at 30%-50%: iPhone faces price increase

The epidemic has had a huge impact on Apple's supply chain. Yesterday, Cook said in an announcement that the iPhone will be in a supply crisis and the company's revenue in March will be affected.

Now the question is, how serious is the iPhone supply crisis? According to the latest reports from foreign media, in the iPhone supply chain, the production capacity of Apple's suppliers is currently around 30%-50%.

Apple recently lowered its revenue target. This is the second time since January 2019 that Apple has lowered its revenue target. Apple said in an investor statement on February 17 that the company does not expect to achieve its revenue target for this quarter, mainly due to insufficient global supply of iPhones caused by the epidemic and reduced demand in China.

Apple may miss mass production plans for a cheaper version of the iPhone that was originally scheduled to be released this spring. Apple warned on Monday that it was unlikely to meet its March quarter sales forecast due to market instability.

Sources in the industry chain said that it is still unclear when the epidemic will end, and the impact on the supply chain will continue. If iPhone supply cannot keep up, price increases will be inevitable. This is definitely not what Apple wants to see, but it cannot be avoided.

It is worth mentioning that foreign media Bloomberg reported today that despite the impact of the coronavirus epidemic on Apple's supply chain production, Apple's "cheap" iPhone will still be launched next month, but the new iPad Pro model originally scheduled to be launched in the first half of 2020 may be postponed.

The low-cost iPhone is still expected to launch in March, but plans are still not 100% certain. Apple is also preparing a new camera system for the iPad Pro upgrade model in the first half of 2020, and the new coronavirus epidemic may delay the plan.